Remarkable Business Performance

In FY 2023-24, TVSM achieved significant milestones in the two-wheeler ICE segment, surpassing sales of 3.85 million units, a remarkable increase from 3.42 million units in the previous year. Despite challenges in the global market, the Company's two-wheeler exports totalled 0.89 million units, reflecting a slight decline of 3.0% year-on-year. Looking ahead, the Company anticipates a rebound in its two-wheeler business, particularly in the African market, supported by the expected improvements in the global economic situation as inflation moderates further and currency stabilises. TVSM has implemented strategic measures to mitigate challenges and is poised for a strong recovery in international markets.

Leading in Sustainable Mobility

The year saw us achieve the highest VAHAN retail sales in March 2024 - a testament to our commitment to innovation and environmental stewardship. We are investing significantly in the EV segment to improve design, deploy future technologies, and enhance digital capabilities. This was evident in the launch of TVS X, a premium product with advanced features, superior design, powertrain, and battery technology.

Prioritising Partnerships

Since acquiring Norton Motorcycles in 2020, TVSM has been ramping up its investment in the Company. Through knowledge sharing and leveraging our mutual engineering and design capabilities, Norton aims to expand its product portfolio. Our associations with EBCO in the UK, Drive X, ION Mobility, and Swiss E-Mobility Group AG (SEMG), among others, will further aid our strategy of transitioning to a smart mobility company by leveraging our mutual strengths and know-how.

Remaining Invested in the Future

In keeping with this plan, we made a strategic investment of `88 crore in Norton to enhance the appeal of the Norton brand and introduce innovative products. We have also made significant new launches and introduced new variants of existing models of our motorcycles and e-bikes. This ability to innovate and diversify is one of TVSM's core strengths.

We have outlined a product pipeline for FY 2025-26, with additional time allocated for the development of high-quality products in the premium and super-premium segments. Although our European subsidiaries, such as SEMG, were impacted by the economic slowdown, we remain committed to long-term investments to rebuild their strength.

We aim to drive growth by investing in new products and premiumisation. Our investments in digital connectivity strengthen our EV and ICE capabilities, and we anticipate elevating customer satisfaction with customer-centric investments in software, electronics, and digital connectivity. Our product innovations are tested on the track as part of our 'Track to Road' philosophy, enhancing the capabilities of our Apache sports motorcycles. We will continue to support sports enthusiasts through TVS Racing and enrich our premium offerings.

Driving Market Expansion

We focus on building enduring relationships with retailers, stockists, and dealers to expand our market presence. Our hub-and-spoke model ensures careful supply chain management while balancing the interests of our partners and our Company. Our recent partnership with Emil Frey in France will help us tap into new markets and expand our distribution network. Additionally, we aim to increase our presence in the evolving rural market in India.

Dual Technology Capability

TVSM considers its investments crucial for the future and aims to drive topline growth by investing in new products and various technologies to strengthen its EV and ICE capabilities. These endeavours will further elevate customer satisfaction. We also understand that the scooter segment is likely to grow significantly, with market share projected to increase to 35-40%.

This growth will create opportunities for both ICE and EV segments, allowing consumers to choose as per their convenience and comfort. The Company's dedication to investing in both technologies reflects its commitment to meeting the diverse preferences of its customers.

Growing Sustainability

TVSM's business strategy prioritises Environmental, Social, and Governance (ESG) elements. It focuses on resource efficiency, with a 10% reduction in water usage and 93% of its electricity coming from renewable sources. The Company is committed to becoming a 'Net Zero' carbon emitter. Its ESG efforts have led to cost reductions, market opportunities, and better risk management.